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August market volatility had little impact on Deutsche Bank's (DB.US) trading profit in Q3

Market IntelWednesday, Oct 23, 2024 10:20 am ET

1min read

August's volatility and unstable swings across asset classes did not significantly impact Deutsche Bank's (DB.US) trading business, which still posted strong trading profits in the third quarter, with only three days of net losses, the bank said on Wednesday.

Mid-quarter VaR soared amid concerns about the U.S. economic outlook that roiled the market. VaR is used to assess and measure the market risk and potential maximum value loss of any financial asset or portfolio of securities under normal market conditions and a given confidence level.

"We don't think the third quarter was as volatile as August," Deutsche Bank's chief financial officer James von Moltke said.

The market was shaken by the weak U.S. nonfarm payrolls report released at the beginning of August, which raised concerns that the Federal Reserve's decision to keep interest rates high for an extended period could lead to further economic slowdown. However, the market quickly recovered as subsequent macroeconomic data improved and the Fed and other major central banks began to ease monetary policy.

Moreover, Deutsche Bank said on Wednesday that its net revenue in the third quarter was â¬7.501 billion, up 5% YoY, topping analysts' average estimate of â¬7.338 billion; its net profit attributable to the company's shareholders was â¬461 million, up 42% YoY. The bank said that the partial release of â¬440 million of litigation reserves in the third quarter helped boost profits, and it has now applied for a share buyback.

By segment: the corporate banking department (CB) recorded net revenue of â¬841 million, down 3% YoY. The investment banking department (IB) recorded net revenue of â¬2523 million, up 11% YoY; its fixed income and currencies (FIC) business recorded revenue of â¬2100 million, up 11% YoY. The private banking department (PB) recorded net revenue of â¬2319 million, down 1% YoY. The asset management department (AM) recorded net revenue of â¬660 million, up 11% YoY.

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